MIRA INFORM REPORT

 

 

Report No. :

354065

Report Date :

10.12.2015

 

IDENTIFICATION DETAILS

 

Name :

RENTEX WEAVERS LIMITED

 

 

Formerly Known As :

KALPESH INVESTMENT PRIVATE LIMITED

 

 

Registered Office :

B 116, Shree Ghantakaran Mahavir Commercial Market, Sarangpur, Ahmedabad-380002, Gujarat

Tel. No.:

91-79-30417117

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

05.02.1982

 

 

Com. Reg. No.:

04-005008

 

 

Capital Investment / Paid-up Capital :

Rs. 2.670 Million

 

 

CIN No.:

[Company Identification No.]

U65910GJ1982PLC005008

 

 

IEC No.:

Not Divulged 

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AAACK8764A

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Job work of Clothes, Fabrics. (Confirmed by management)

 

 

No. of Employees :

4 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (28)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject was established in the year 1982 and it is engaged in the job work operations of cloths and fabrics.

 

The company possesses small scale of business operations and reported low revenue growth over a years.

 

Rating remain constrained on account of company’s moderate financial profile marked by low net worth base along with modest debt coverage indictors and leverage balance sheet profile of the company.

 

Rating also takes into consideration risk associated with the nature of job work business operations and susceptibility to fluctuation in clients order imparting volatility to revenue of the company.

 

Trade relations are reported as fair. Payments are reported to be slow but correct.

 

In view of aforesaid, the company can be considered for business dealings with some caution.

 

Note :

As per Registrar of Companies the date of balance sheet (i.e. financial filed0 is shown as 31.03.2015 but the documents related to the financial for the year 31.03.2015 are not available from any source.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

Not Available

Rating

Not Available

Rating Explanation

Not Available

Date

Not Available

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2015.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Pragnesh Patel

Designation :

Accounts Manager of Aavree

Contact No.:

91-79-30417117

Date :

09.12.2015

 

 

LOCATIONS

 

Registered Office :

B 116, Shree Ghantakaran Mahavir Commercial Market, Sarangpur, Ahmedabad-380002, Gujarat

Tel. No.:

91-79-30417117

Fax No.:

Not Available

E-Mail :

mishankshah@gmail.com

pragnesh@aarvee-denims.com

Location :

Owned

Locality :

Commercial

 

 

DIRECTORS

 

As on 31.03.2015

 

Name :

Mr. Vinodkumar  P. Arora

Designation :

Director

Address :

Omkar, 239/2, FP No. 12/01/B, Hebatpur,, Shila Road, Opposite Amimangal Bunglow-3, Thaltej, Ahmedabad-380054, Gujarat, India

Date of Birth/Age :

15.05.1951

Date of Appointment :

10.11.2004

DIN No.:

00007065

Other Directorship:

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

L17110GJ1988PLC010504

AARVEE DENIMS AND EXPORTS LIMITED

Managing director

01/10/2014

28/03/1988

-

Active

NO

2

L51100GJ1985PLC046966

TWENTY FIRST CENTURY MARKETING LIMITED

Director

08/11/2004

08/11/2004

-

Active

NO

3

U65910GJ1982PLC005008

RENTEX WEAVERS LIMITED

Director

10/11/2004

10/11/2004

-

Active

NO

 

 

Name :

Mr. Pankaj Vinodkumar Arora

Designation :

Director

Address :

Omkar, 239/2, FP No. 12/01/B, Hebatpur,, Shila Road, Opposite Amimangal Bunglow-3, Thaltej, Ahmedabad-380054, Gujarat, India

Date of Birth/Age :

12.04.1979

Date of Appointment :

01.04.2000

DIN No.:

00054884

Other Directorship:

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U65910GJ1982PLC005008

RENTEX WEAVERS LIMITED

Director

01/04/2000

01/04/2000

-

Active

NO

2

U65910GJ1995PTC028112

SHIPA FABRICS PRIVATE LIMITED

Director

01/04/2000

01/04/2000

-

Active

NO

3

U74899DL1991PTC042781

PEE VEE SYNTHETICS PRIVATE LIMITED

Director

29/09/2002

29/09/2002

-

Active

NO

4

U51399GJ1997PTC031432

BHANSALI TRADELINK PRIVATE LIMITED

Director

15/04/2006

15/04/2006

-

Active

NO

 

 

Name :

Ms. Renu V. Arora

Designation :

Director

Address :

Omkar, 239/2, FP No. 12/01/B, Hebatpur,, Shila Road, Opposite Amimangal Bunglow-3, Thaltej, Ahmedabad-380054, Gujarat, India

Date of Birth/Age :

15.08.1953

Date of Appointment :

10.11.2004

DIN No.:

00062787

Other Directorship:

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U17119GJ1989PTC011959

VEE BEE TEXTILES PRIVATE LIMITED

Director

27/03/1991

27/03/1991

-

Active

NO

2

L51100GJ1985PLC046966

TWENTY FIRST CENTURY MARKETING LIMITED

Director

08/11/2004

08/11/2004

-

Active

NO

3

U65910GJ1982PLC005008

RENTEX WEAVERS LIMITED

Director

10/11/2004

10/11/2004

-

Active

NO

 

 

KEY EXECUTIVES

 

Name :

Mr. Pragnesh Patel

Designation :

Accounts Manager of Aavree

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2014

 

SHAREHOLDING FILE DETAILS ATTACHED

 

Equity Share Break up (Percentage of Total Equity)

 

As on 30.09.2014

 

Category

Percentage

Directors or relatives of Directors

17.60

Other top fifty shareholders

82.40

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Job work of Clothes, Fabrics. (Confirmed by management)

 

 

Products :

·         Clothes

·         Fabrics

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

 

Selling :

Cheque

 

 

Purchasing :

Cheque

 

PRODUCTION STATUS NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Payment Behaviour

Market Goodwill

Overall

Not Divulged

Not Divulged

Not Divulged

Remark:

Not Divulged

 

 

Customers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Product Quality

Delivery Behaviour

Overall

Not Divulged

Not Divulged

Not Divulged

Remark:

Not Divulged

 

 

No. of Employees :

4 (Approximately)  

 

 

Bankers :

Bank Name

Bank of Baroda

Branch

Ashram Road Branch, Near Vallabhsadan, Ahmedabad - 380009, Gujarat, India

Person Name (With Designation)

Not Divulged

Contact Number

Not Divulged

Name of Account Holder

Not Divulged

Account Number

Not Divulged

Account Since (Date/Year of Account Opening)

Not Divulged

Average Balance Maintained (If Possible)

Not Divulged

Credit Facilities Enjoyed (If any)

Not Divulged

Account Operation

Not Divulged

Remarks (If any)

Not Divulged

 

HDFC Bank Limited

 

 

Facilities :

Secured Loan

31.03.2014

(Rs. in Million)

31.03.2013

(Rs. in Million)

Long-term Borrowings

 

 

Term Loans from Banks

0.764

1.694

Less: Current maturities of long-term Loan

(0.764)

(0.930)

Other Loans

 

 

Vehicle Loans

0.320

0.472

Less: Current maturities of long-term Vehicle Loans

(0.167)

(0.152)

Total

0.153

1.084

Notes :

1. Secured by way of hypothecation of respective plant and machineries financed by the bank, other movable assets and personal guarantee of all directors.

 

2. Secured by way of hypothecation of respective motor vehicles purchased.

 

Auditors :

 

Name :

Mishank Shah and Associates

Chartered Accountants

Address :

191/1, New Cloth Market, O/S Raipur Gate, Ahmedabad-380002, Gujarat, India

Tel. No.:

91-79-22137934

PAN N Income-tax PAN of auditor or auditor's firm :

AKJPS7710E

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Associates Companies (Confirmed by management) :

·         Virendra Bhogilal and Company

·         Arora Agencies

·         Pee Vee Synthetics Private Limited

·         Vee Bee Textiles Private Limited

·         Kashi Investments Private Limited

·         V.B. Investments Private Limited

·         Kashvi Holdings Private Limited

·         New Ahmedabad Synthetic Private Limited

·         Bhansali Tradelink Private Limited

·         Shipa fabrics Private Limited

·         Twenty first century marketing limited

·         Enbee Textile Private Limited

·         Aarvee Denims And Export Private Limited

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

500,000

Equity Shares

Rs.10/- each

Rs. 5.000 Million

10,000

Preference Shares

Rs.1000/- each

Rs. 10.000 Million

 

Total

 

Rs. 15.000 Million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

267,000

Equity Shares

Rs.10/- each

Rs. 2.670 Million

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

 

ABRIDGED BALANCE SHEET

 

 

SOURCES OF FUNDS

 

31.03.2014

31.03.2013

31.03.2012

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

2.670

2.670

3.559

(b) Reserves & Surplus

22.494

19.810

18.773

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

25.164

22.480

22.332

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.153

1.084

1.771

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

0.153

1.084

1.771

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

0.000

0.000

(b) Trade payables

0.000

0.000

0.000

(c) Other current liabilities

0.947

1.126

0.984

(d) Short-term provisions

1.288

1.248

1.347

Total Current Liabilities (4)

2.235

2.374

2.331

 

 

 

 

TOTAL

27.552

25.938

26.434

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

2.281

3.140

3.317

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

0.000

0.000

0.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

3.698

3.698

3.698

(c) Deferred tax assets (net)

0.485

0.429

0.363

(d)  Long-term Loan and Advances

20.603

18.085

18.414

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

27.067

25.352

25.792

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

0.000

0.000

0.000

(c) Trade receivables

0.271

0.273

0.274

(d) Cash and cash equivalents

0.197

0.306

0.362

(e) Short-term loans and advances

0.000

0.000

0.000

(f) Other current assets

0.017

0.007

0.006

Total Current Assets

0.485

0.586

0.642

 

 

 

 

TOTAL

27.552

25.938

26.434

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Revenue from Operations

3.360

3.360

3.360

 

 

Other Income

2.145

2.259

2.222

 

 

TOTAL                                     (A)

5.505

5.619

5.582

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Employees benefits expense

0.414

0.415

0.264

 

 

Other expenses

0.093

0.079

0.095

 

 

TOTAL                                     (B)

0.507

0.494

0.359

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)

4.998

5.125

5.223

 

 

 

 

 

Less

FINANCIAL EXPENSES (D)

0.222

0.182

0.176

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)

4.776

4.943

5.047

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION (F)

0.859

0.947

1.278

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX (E-F)   (G)

3.917

3.996

3.769

 

 

 

 

 

Less

TAX (H)

1.232

1.182

1.218

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX  (G-H)   (I)

2.685

2.814

2.551

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

10.06

10.54

7.17

 

 

Particulars

 

 

 

31.03.2015

Sales Turnover (Approximately)

 

 

4.500

 

 

Expected Sales (2015-2016) : Rs. 400.000 Million

 

The above information has been parted by Mr. Pragnesh Patel (Accounts Manager of Aavree)

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2014

31.03.2013

31.03.2012

Current Maturities of Long term debt

0.931

1.082

0.930

Cash generated from operations

NA

NA

NA

Net cash flows from (used in) operation

NA

NA

NA

 

 

KEY RATIOS

 

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT / Sales)

(%)

79.91

83.75

75.92

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

148.75

152.53

155.45

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

16.76

18.32

16.85

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.16

0.18

0.17

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.04

0.10

0.12

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.22

0.25

0.28

 

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

3.559

2.670

2.670

Reserves & Surplus

18.773

19.810

22.494

Net worth

22.332

22.480

25.164

 

 

 

 

long-term borrowings

1.771

1.084

0.153

Short term borrowings

0.000

0.000

0.000

Current maturities of long-term debts

0.930

1.082

0.931

Total borrowings

2.701

2.166

1.084

Debt/Equity ratio

0.121

0.096

0.043

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Revenue from Operations

3.360

3.360

3.360

 

 

0.000

0.000

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Revenue from Operations

3.360

3.360

3.360

Profit

2.551

2.814

2.685

 

75.92%

83.75%

79.91%

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of establishment

Yes

2]

Constitution of the entity Incorporation details

Yes

3]

Locality of the entity

Yes

4]

Premises details

No

5]

Buyer visit details

--

6]

Contact numbers

Yes

7]

Name of the person contacted

Yes

8]

Designation of contact person

Yes

9]

Promoter’s background

Yes

10]

Date of Birth of Proprietor / Partners / Directors

Yes

11]

Pan Card No. of Proprietor / Partners

No

12]

Voter Id Card No. of Proprietor / Partners

No

13]

Type of business

Yes

14]

Line of Business

Yes

15]

Export/import details (if applicable)

No

16]

No. of employees

Yes

17]

Details of sister concerns

Yes

18]

Major suppliers

No

19]

Major customers

No

20]

Banking Details

Yes

21]

Banking facility details

Yes

22]

Conduct of the banking account

--

23]

Financials, if provided

Yes

24]

Capital in the business

Yes

25]

Last accounts filed at ROC, if applicable

No

26]

Turnover of firm for last three years

Yes

27]

Reasons for variation <> 20%

--

28]

Estimation for coming financial year

Yes

29]

Profitability for last three years

Yes

30]

Major shareholders, if available

Yes

31]

External Agency Rating, if available

No

32]

Litigations that the firm/promoter involved in

--

33]

Market information

--

34]

Payments terms

Yes

35]

Negative Reporting by Auditors in the Annual Report

No

 

 

 

INDEX OF CHARGES NO CHARGES EXIST FOR COMPANY

 

 

CONTINGENT LIABILITIES:

 

(Rs. in million)

PARTICULARS

31.03.2014

31.03.2013

Letter of Credit

--

--

Guarantees given by banks on behalf of the Company

--

--

Income Tax matter disputed in appeal A.Y 2006-07

0.757

0.757

 

 

FIXED ASSETS

 

Tangible Assets

·         Plant and Machineries

·         Motor car

Intangible Assets

·         Computer software

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.79

UK Pound

1

Rs.100.49

Euro

1

Rs.72.51

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

JYTK

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILITY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

28

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

 

 

 

 

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.